Greening IMF Lending: Elusive Prospects, Mixed Evidence

Recourse, LSD Senegal

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Abstract: This report critically assesses how climate finance is being integrated into IMF lending via its Resilience and Sustainability Facility (RSF). Analyzing over 195 conditions across 17 countries, it identifies Kenya-specific risks including austerity-driven policy distortions. Fiscal reforms often outweigh climate considerations, potentially undermining green recovery. The study advocates better diagnostics, progressive financing tools, and just transition safeguards. Kenya?s case highlights debt pressure and social impacts of subsidy removals, calling for inclusive reform models and carbon-aligned fiscal strategies.